medium · Volume Spread Analysis effort-vs-result-spread
How does the Close Position help distinguish 'Absorption Volume' from 'Selling Pressure' on a high-volume down-bar?
- They both close on the lows, but the volume is higher for Absorption
- Absorption closes off the lows; Selling Pressure closes on the lows
- Absorption must close on the high; Selling Pressure must close in the middle
- Absorption occurs on up-bars, while Selling Pressure occurs on down-bars
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